Cash pours in to fraud fighters

Reports that predict massive amounts of internet fraud have a silver lining for several start-up companies. Those start-ups are in what is broadly called the security business and they are having no trouble attracting venture capital funding.

Typical of the predictions was a recent report from Meridien Research that said online payment fraud could be as high as $15.5bn (£10.6bn) in 2005 if e-tailers did not become more security conscious. The fraud figure for last year was $1.6bn.

Security companies are coming up with all types of products, not only to stop fraud but also to keep out hackers and to ensure that employees are behaving themselves.

Entercept Security Technologies, which develops technology to identify and intercept hackers, has received $33m. Niksun, which makes software that monitors employees, has raised $27m.